Labour confirms plans for National Insurance and income tax

The Labour Party government has outlined its plans and proposals for National Insurance, income tax and HMRC. The Labour Party defeated the Conservative Party at the polls on July 4 (Thursday) in the General Election with Sir Keir Starmer becoming Prime Minister.

In its manifesto, Labour said: "Labour’s manifesto for change is a plan to kickstart economic growth by reforming Britain’s economy and bring about a decade of renewal. This manifesto is an ambitious programme driven by belief in our country and its potential for the future. It is the change the country needs."

It added: "Our plan for Britain is a fully costed, fully funded, credible plan to turn the country around after 14 years of the Conservatives. It contains a tax lock for working people – a pledge not to raise rates of income tax, national insurance or VAT."

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National Insurance

Its manifesto says: “We will ensure taxes on working people are kept as low as possible. Labour will not increase taxes on working people, which is why we will not increase National Insurance, the basic, higher, or additional rates of Income Tax, or VAT.

Income Tax

Its manifesto states: “We will end the use of offshore trusts to avoid inheritance tax so that everyone who makes their home here in the UK pays their taxes here. Private equity is the only industry where performance-related pay is treated as capital gains. Labour will close this loophole.”

It says: "Whether it is crashing the pound to give tax cuts to the richest 1%; degrading public services because of a mess made by the banks; or the failure to invest in clean British energy that left us exposed when Putin invaded Ukraine – so much of what Britain has been through in the past 14 years is explained by a Conservative failure to face the future. Only Labour can turn the page."

HMRC

It adds: “We will modernise HMRC and change the law to tackle tax avoidance. We will increase registration and reporting requirements, strengthen HMRC’s powers, invest in new technology and build capacity within HMRC.

“This, combined with a renewed focus on tax avoidance by large businesses and the wealthy, will begin to close the tax gap and ensure everyone pays their fair share.”